Solera Holdings acquisition of CAP Automotive is to be investigated by the Competition and Markets Authority, at the behest of the two companies.

No date has been given on when the merger inquiry will start.

In a joint statement Solera Holdings and CAP Automotive said: "As part of the acquisition agreement, Solera and CAP proactively approached and sought formal approval from the UK Competition and Markets Authority. 

"Both businesses continue to operate in full compliance with agreed guidelines relating to permissible joint operations, while the CMA enquiry process is under way. Further comment is inappropriate during the period of this formal diligence."

Solera announced its acquisition of the entire share capital of CAP Automotive on November. It owns data providers HPI and Audatex.